LA PAZ, Bolivia (AP) — Bolivian miners marched through the center of the country’s capital, La Paz, as union-organized protesters took to the streets elsewhere on Monday, the first day of a strike against the government’s removal of fuel subsidies blamed for causing dollar shortages and economic instability.
The Central Workers Union of Bolivia called for a protest, but many trade groups, including transport workers, did not attend the rally. Some union leaders have said they would support scrapping subsidies that have been in place for nearly two decades.
Bolivian centrist President Rodrigo Paz, who took office on November 8, ended the fuel subsidies that the previous left-wing government had maintained for more than 20 years and kept gasoline prices at US$0.53 per liter. Paz’s emergency decree last week set the price of gasoline at around $1 a liter.
“This country is sick and must heal,” Paz told a town hall meeting broadcast on national television on Sunday.
Paz added that “every day, $10 million goes to subsidize smugglers” who resell subsidized fuel in Bolivia and abroad.
Bolivia’s business groups have backed Paz’s new economic measures, which are expected to ease dollar shortages and make it easier for businesses to import goods and capital.
“We knew that sooner or later the subsidies would end,” said Luis Paco, leader of the union representing businessmen in the city of El Alto. “There are no negotiations on new adjustments, but we know it is inevitable.”
Bus drivers’ unions did not take part in Monday’s protests after the Bolivian government said it would be able to import auto parts duty-free. Bass also called for a 20% increase in the minimum wage.
Imports of gasoline and diesel cost the government up to $3 billion a year, draining Bolivia’s foreign exchange reserves and exacerbating Bolivia’s worst economic crisis in four decades following a decline in natural gas exports.
But unions traditionally aligned with left-wing political leaders – including those representing miners and coca growers – went on strike on Monday to demand the reinstatement of fuel subsidies.
La Paz police blocked access to the central square, the seat of government, to prevent demonstrators from entering.
In the neighboring city of El Alto, the local council blocked some roads. Roadblocks also exist on highways in six of the country’s nine regions, according to Bolivia’s highway authority.
“We have a fight in the streets and this fight will continue until the decree to remove subsidies is repealed,” mining leader Andrés Paye told reporters. “This government has approved regulations that favor business owners and punish the poor.”
Unions allied to former President Evo Morales led massive marches in Cochabamba, the Andean country’s third-largest city, and blocked two main highways in the east of the country.
The bus drivers’ union did not join the strike after negotiations with the new Paz government over the weekend.
“We will continue to work and serve the people,” said Lucio Gomez, leader of the Transport Workers union.
Carlos Cordero, a La Paz political science professor, said the unions behind the strike were trying to “flex their muscles” ahead of next year’s gubernatorial and mayoral elections. But he said Monday’s relatively low turnout showed the union has been weakened.
“Many sectors in the country are convinced that adjustments are necessary,” Cordero said.
